Nafta Polska says chemicals sector short of zl. 880 million

The chemicals sector is in need of zl. 880 million in order for its companies to clear their liabilities and complete those investments already under way. However, Nafta Polska (NP), which is responsible for the privatization of the sector, currently has no financial resources at its disposal. "Some zl. 250 million of this amount will have to be spent on the construction of a melamine plant in Pulawy," claimed NP representatives. NP estimates that between 2000 and 2002 the sector's revenues from sales dropped by more than zl. 1 billion while last year its losses amounted zl. 385 million. At the same time, debts to Polish Oil and Gas (PGNiG) have already reached zl. 466 million. "The situation has deteriorated dramatically since, in the first quarter of 2001, PGNiG decided to increase the price of gas," said an NP representative. NP is currently negotiating the possibility of reducing gas prices. (Puls Biznesu, p. 8) A.Z.